Managing Your Money 

How can I pass my Isa money to my family?

Reader Portfolio

Anne, 66


Stocks-and-shares individual savings account


Income and leaving a legacy

Anne is 66 and has stocks-and-shares individual savings accounts (Isa) worth almost £100,000. She holds these in two separate Isa accounts with different providers. She says: "I am investing the £70,000 in my Fidelity Isa for income. However, I am wondering whether I can put the money in a drawdown pension, which my two daughters could inherit without being subject to tax. I have also thought of gifting £3,000 a year to my daughters and five grandchildren.

"I am moderately adventurous and versatile with regards to investment risk, although with the uncertainty of outcome of UK elections perhaps I should be more cautious.

"My Fidelity portfolio for the most part was selected by my independent financial adviser (IFA) almost two years ago. I am due a review and need to decide whether I carry on using him. However, I do have an interest in Latin America, so my Invesco Perpetual investment was a punt. I also backed Neil Woodford's CF Woodford Equity Income fund from inception, switching money from the Invesco Perpetual High Income fund he used to manage.

"My First Direct Isa holdings were selected when I have had fun reading your articles. I used them as a challenge to see if I could beat the FTSE 100 index, which I have succeeded in doing."

Anne has a monthly income of £2,200 from pensions and a buy-to-let property worth £50,000 that generates £275 income per calendar month. Her house is worth £240,000 and she has cash Isas and savings worth £7,600.

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